After setting aside the FRS, does withdrawal from CPF (from age 55 onwards) incurred income tax?

Hi, have few questions pertaining to CPF withdrawal upon reaching age 55:

Excess money that can be withdrawn from CPF SA & OA excludes top-up monies, interest earned and any government grants received (Here’s How Much You Can Withdraw From CPF From Age 55 (seedly.sg)). How do we know the actual amount that could be withdrawn then? Also, what would happen to the "ring-fenced" top-up monies, interest earned and government grants received that cannot be drawn out?
Would the drawn out CPF money attract personal income tax? If yes, based on which tax bracket?

Thanks in advance!

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Tan Choong Hwee

25 Apr 2022

Solutions Specialist at Providend

If you read the Seedly blog post carefully, you would notice the withdrawal can come from 2 different accounts (specially look at the example shown in the table):

SA & OA: this is the case where you have already set aside FRS in RA, where all the remaining amount in SA & OA can be withdrawn (SA to be depleted first, then OA).
RA: this is the case where you pledge property to withdraw excess over BRS, but excluding what you called the "ring-fenced" top-ups, interests and grants if any.

The "ring-fenced" withholding only applies to the 2nd case, i.e. withdraw from RA with property pledge. This amount would remain in RA, earning 4% interests, and participate in CPF LIFE payouts starting from PEA (Payout Eligibility Age, 65~70).

For case 1, the entire amount in SA and OA can be withdrawn, following the sequence of withdrawing from SA first, then from OA once SA is depleted.

For case 2, you can check the amount you can withdraw from RA by property pledge online by login into your CPF account. Please refer to this FAQ on CPF website:

https://www.cpf.gov.sg/member/faq/retirement-in...

CPF withdrawal from SA/OA or RA doesn't attract any personal income tax.

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